'Poseidon Adventure'
In Government Bonds

By

Brett Arends

Updated March 3, 2008 10:48 pm ET

It's the "Poseidon Adventure" in government bonds.

A tidal wave of (hedge fund) selling has just tipped the market upside down. So the yield on tax-free municipals, which is normally way down in the hold, has suddenly been lifted far above those on taxable Treasurys. It makes for an easy trade.